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FuboTV Ends Litigation Against Media Giants, Paves Way for Merger with Hulu + Live TV

In a surprise move, FuboTV has dropped its lawsuit against Walt Disney Co, Fox, and Warner Bros Discovery, clearing the path for a merger with Hulu + Live TV. The deal, announced on Monday, will create a streaming giant with $6 billion in revenue and 6.2 million subscribers, making it the second-largest internet pay-TV company in North America.

The Background: A Battle Over Venu Sports

FuboTV had filed a lawsuit in February 2024, alleging that Venu Sports, a live sports app backed by Disney, Fox, and Warner Bros Discovery, would violate U.S. antitrust law by reducing competition and driving up prices. The service was designed to appeal to price-conscious sports fans, offering a lower-cost alternative to existing streaming services.

A Judge’s Ruling and the Appeal

In August, a judge ruled in favor of FuboTV, issuing a preliminary injunction that temporarily barred Venu’s launch. Disney, Fox, and Warner Bros Discovery appealed the decision, arguing that blocking Venu would decrease consumer choice and deny lower prices to consumers. The U.S. Justice Department and several states, including New York, Illinois, and California, urged the 2nd Circuit to uphold the injunction, while Florida and five other states asked the court to reject it.

A Settlement and a New Era

With the lawsuit dropped, FuboTV can now focus on its merger with Hulu + Live TV. The deal will create a formidable player in the streaming market, with a combined revenue of $6 billion and a subscriber base of 6.2 million. In a statement, FuboTV said it has settled all litigation with Disney and ESPN related to Venu, as well as with Fox and Warner Bros Discovery.

What’s Next?

The merger is expected to have a significant impact on the streaming landscape, offering consumers a wider range of options and potentially driving down prices. As the streaming market continues to evolve, one thing is clear: FuboTV’s decision to end its litigation against the media giants has paved the way for a new era of competition and innovation.